The HSBC in Bangladesh has enabled Tk. 612 crore in social loan financing for BRAC to execute social development initiatives. This is the country’s second Social Loan Principles (SLP) based financing, HSBC stated. “The path-breaking deal will open up many untrodden avenues of socioeconomic development of Bangladesh’s marginal communities,” stated Mr. Asif Saleh, Executive Director at BRAC. The article is about HSBC Provided BRAC Tk. 612cr in Social Loan Financing.
According to the agreement, Md Mahbub-ur-Rahman, CEO of HSBC Bangladesh, expressed, “We are delighted to extend our assistance with the social loan financing for BRAC. This is definitely part of our global sustainability commitment, and I also want to thank BRAC, the largest non-governmental development organization in the world, for collaborating with us to ensure social support in the community.”
Regarding environmental sustainability, Kevin Green, Head of Wholesale Banking of HSBC Bangladesh, said, “As part of our global sustainability aim, we sustain environmentally and socially sustainable economic activities and businesses. This social loan financing for BRAC portrays our devotion and capability to support businesses in their ESG journey and reinforces our market leading position in sustainability.”
According to the statement, the social loan supports projects to mitigate or address a specific social issue and achieve positive social outcomes. These include providing and promoting affordable basic infrastructure, access to essential services, like, health and healthcare, affordable housing, employment generation via the potential effect of SME financing and microfinance, food security, and socioeconomic advancement and empowerment.
Social loans are functioned based on the “Social Loan Principles” (SLP), which were introduced in 2021.
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